Sixpenny Group nominated for EG Industrial & Logistics award
The team at Sixpenny Group is extremely proud to be shortlisted for the ‘2023 EG Industrial & Logistics award’.
Run by the leading provider of data, news and analytics for the UK commercial property market, the awards celebrate businesses which “showcase purpose, a wider contribution to clients, other stakeholders and the built environment“.
We’re delighted that Sixpenny Group features alongside some very prestigious names as an “example of operational excellence, clear evidence of strong financials and innovation“.
2022 was a transformative year for our business as it featured the completion of a major speculative logistics development which was pre-let to a blue-chip tenant Evri and sold to CBRE Global Investors for £47.7 million.
As a young business launched in 2019, the Gemstone Building at the Manor Royal business district in Crawley was a landmark project that exemplifies our focus on delivering the future of real estate through a focus on strategic vision, collaboration and sustainability.
The development:
-Transformed redundant space: We released latent value in 145,000 sq.ft of unproductive offices by delivering 82,000 sq.ft of much needed high-quality industrial space just 6.5km from London Gatwick Airport. The 6.2-acre site (formally Virgin Group’s HQ) had been vacant for over five years, with Sixpenny Group acquiring it off-market in April 2021 for £18.5m.
-Met occupiers’ needs: Three months post-acquisition we signed heads of terms with a global blue-chip tenant, Evri, executing the lease in Jan ’22. The development has enabled Evri to meet rapidly growing demand by doubling the capacity of its previous operation and open a 24/7 operating window.
-Delivered a sustainable development: The latest processes and technologies were specified throughout, resulting in the Gemstone Building securing BREEAM ‘Excellent’ certification. Significant parts of the building were recycled and the use of high-capacity EV charging, rainwater harvesting, and low carbon heating and solar panels met the tenants’ own exacting sustainability targets. It was also the first building in the region to secure planning following the change in Natural England’s water neutrality guidance.
-Positively impacted the community: We worked closely with local authorities, business leaders and other stakeholders to ensure our vision for a state-of-the-art distribution facility was understood and shaped by their priorities. The development is highly regarded and has secured the presence of a major employer on site for the next 15 years.
-Overcame challenges: Despite COVID-19 restrictions, materials shortages, labour supply pressures and a complete national lockdown, our focus on precise practical execution ensured the development took just 15 months from acquisition to practical completion in July 2022.
-Generated financial success: In September 2022, Sixpenny Group sold the Gemstone Building to CBRE Global Investors for £47.7m. This generated a 3.3% net initial yield, a record for the area, and comparable with similar transactions for prime UK locations.
Director of Sixpenny Group, Egor Shestakov, said: “It’s fantastic to be nominated alongside some of the biggest names in the Industrial & Logistics property market.
“It’s testament to the hard work and collaboration between our team, delivery partners and stakeholders in the local community.
“The vision, speed of development and focus on quality typified by the Gemstone Building reflects Sixpenny Group’s purpose and approach. It is a strategic milestone for the business and has put us in a strong position to grow rapidly over the coming years.
“We now have over 550,000 sq.ft of development in the pipeline and are reinvesting to build our reach, capabilities and brand.
“Sixpenny Group believe real estate is more than just an asset class. True value lies in creating places and spaces that incorporate the best ideas, methods and stakeholder input to creating quality spaces that deliver long term value.
“It’s great to have this approach recognised by EG and its distinguished judges.”